Attachments: S & R Cracked

S & R Cracked

#61
May 17, 2007 3:17am May 17, 2007 3:17am

shadeslay
| Joined Mar 2007 | Status: Surfer of the market | 388 Posts

Ah the daily high low, I need to get back to using them more. When I first started that was about all I used. If near daily high = short, if daily low = long. Surprising how effective that was, I sometimes had too hold positions for a day or two. But most of the time they would come back to a point I could at least take a profit. I still contribute most of it to luck, but they are a very useful tool.

#62
May 17, 2007 3:55am May 17, 2007 3:55am

piccolo
| Joined Feb 2006 | Status: adjust your sails to the wind | 1,354 Posts

Quoting Bemac

Disliked

No Problem,

The Horizontal Lines are the High of the Previous 24 Hour Session & the Low of the Same. {Personally I like to Start a 24 Hour Session @ 6:30AM EST [6:15 on lower TF] and run it to 6:00AM EST}

The Angled [straight lines] are...
1) The Extension of an imaginary line drawn between the High and the Low of the Previous 24 Hour Session. This Extension Starts as the New Session Begins.

2) The Mirror Image of { 1) }which Starts at The Same Staring point as { 1) } ie, the prvious High OR Low

Ignored

is it enough to trade with? I mean the days where both S and R are broken scare me.

#63
May 17, 2007 10:50am May 17, 2007 10:50am

tradewiser
| Joined Jul 2006 | Status: Trader | 73 Posts

Thanks Bemac. I understand now. I find the angled lines intriguing but I don't understand the logic behind them. What is the reasoning behind them and why a mirror?

Also is it possible in MT4 to draw the mirror images of the extensions of the angled lines?

Sorry for all the questions but I am trying to fully understand the concept before using it.

Many thanks
Naj

#64
Edited 4:39pm May 17, 2007 1:38pm | Edited 4:39pm

tesla
| Joined Oct 2006 | Status: Friendly Neighborhood Programmer | 533 Posts

Quoting tradewiser

Disliked

Thanks Bemac. I understand now. I find the angled lines intriguing but I don't understand the logic behind them. What is the reasoning behind them and why a mirror?

Also is it possible in MT4 to draw the mirror images of the extensions of the angled lines?

Sorry for all the questions but I am trying to fully understand the concept before using it.

Many thanks
Naj

Ignored

I'll take a shot at this, with the understanding that Bemac may end up saying I'm totally wrong.

The trend lines show the average "rate of change" of the previous days total move. Not knowing if todays move will be up or down, you plot yesterdays total move trendline in both directions. It would seem to be a visual reference as to whether today's move is keeping in line with the previous day (regardless of direction) or if you're seeing something markedly different.

And... drawing both lines could indeed be automated in MetaTrader.

#65
May 17, 2007 4:26pm May 17, 2007 4:26pm

Bemac
Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts

Quoting tesla

Disliked

I'll take a shot at this, with the understanding that Bemac may end up saying I'm totally wrong.

The trend lines show the average "rate of change" of the previous days move total move. Not knowing if todays move will be up or down, you plot yesterdays total move trendline in both directions. It would seem to be a visual reference as to whether today's move is keeping in line with the previous day (regardless of direction) or if you're seeing something markedly different.

Ignored

Wow ! I'll go with that. Concise & to the point.

I also think of it {in a vague kinda way} as a Wave Theory.
If the Price follows the Extension, the Wave is Growing. {Trend OR Larger Pullback coming?}
If not, then observe the Reflection for clues of Reversal, Exhaustion or Channel. {Remember that if it followed Yesterday's Reflection, That will be Today's Extension. A symetrical wave would constantly adhere to the Reflection}

Quoting tesla

Disliked

And... drawing both lines could indeed be automated in MetaTrader.

Ignored

I code zero in MT. If you like, I can post the code for VTT if that would assist you.

#66
May 18, 2007 5:28am May 18, 2007 5:28am

tradewiser
| Joined Jul 2006 | Status: Trader | 73 Posts

Thank you to tesla & bemac.

I understand now. It looks like a great way to look at price waves & trends.

Unfortunately I don't have any coding skills but I am interested enough in this to try out VTT so I would be greatfull if you could post the indicator. I am suprised that there isn't any MT4 code for it. The logic doesn't look difficult to impliment.

Many thanks for your time.
Naj

#67
May 18, 2007 8:01am May 18, 2007 8:01am

Bemac
Joined Jan 2006 | Status: Monarch o' the Glen | 5,561 Posts

Quoting tradewiser

Disliked

Thank you to tesla & bemac.

I understand now. It looks like a great way to look at price waves & trends.

Unfortunately I don't have any coding skills but I am interested enough in this to try out VTT so I would be greatfull if you could post the indicator. I am suprised that there isn't any MT4 code for it. The logic doesn't look difficult to impliment.

Many thanks for your time.
Naj

Ignored

Hi Naj,

Here it is for VTT
Import it into VTT using
Tools >
Indicator Builder >
Import >
Browse to where you saved it {it will be called Blk_WAC}

Once Imported, it will show up in your Custom Indicators as...
__Weekly Black Curve
hth

Attached File(s)

Blk_WAC.vtscr 2 KB | 310 downloads

#68
May 20, 2007 2:42am May 20, 2007 2:42am

PipRippy
| Joined Apr 2006 | Status: idiot trader | 81 Posts

I love topics about support/resisitance. I have found that S/R works much better with heikin-ashi charts over regular candle charts. Everytime I go to enter a trade, I can not get way from these charts!

They are very good at showing trends and by drawing trendlines using the heiken-ashi bodies as opposed to the noise created by wicks. I have found this works much better on smaller timeframes less 60min charts. I generally trade off 60/30 min charts- but dropping down to 5 min chart to better time entry.

I usually first use a longterm bar chart(weekly/daily) to draw S/R and relevant fibs etc. But then I will trade live off the heiken-ashi by drawing trendlines inside the actual bodies through the noisy wicks. I can just hear all the "chartist" screaming that you should not draw trendlines through the bodies, but I get very good results ignoring this traditional rule!

In this image these, taking into account that I am only going to short Eur/Usd because longterm chart(daily) shows weakness. The 2nd arrow(trade) I remember I got stopped out- but had a very good entry on next trade. This is why money management is really the key to traDING!

Bemac- I am looking foward to applying another one of your gem of a indicator. I have been using many of your other indicators- so thanks again for sharing!

I am curious about if other traders also like using heiken-ashi ccharts for basic technical analysis?

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#69
May 20, 2007 4:49am May 20, 2007 4:49am

WTB
| Commercial User | Joined Sep 2005 | 1,118 Posts

I tried to apply heiken-ashi to my trading system a while back but I couldn't make much use of it. I discovered that it sort of clouded my price-action reading. It looks fantastic on hindsight when there is a solid thrust to one direction, but in real live trading on the right edge of the chart I just couldnt benefit from it, so I ditched it and came back to pure price action reading as usual.

#70
May 21, 2007 6:59am May 21, 2007 6:59am

PipRippy
| Joined Apr 2006 | Status: idiot trader | 81 Posts

It takes some time just like any chart reading- to start to notice certain patterns with heiken-ashi. I would spend many hours working with shorterm bar exhaustion patterns(mainly from martin prings 1-2-3 bar patterns)- used in conjunction with heiken-ashi. If I know that I am looking to short eur/usd because longterm weekly/daily charts show the double top reversal. I am looking at the 60min heiken-ashi to visual show s/r and other technical features. I then drop down to 15-30 min charts with a bar chart looking for those shorterm pring patterns to signal the reversal better than heken ashi charts.

I think what I am getting at is that the heiken-ashi chart are about the worst chart to show shorterm reversal/continutation patterns. Nothing compares to the prings shorterm bar patterns for reversals etc. Some people would say that cahdlesticks work better but everybody develops their own "eye'.

If you look at a trend from a candlestick or bar 0r heiken-ashi chart- to me personally the heiken-ashi shows the actual trend in place more consistetenly with much better clarity from start to when it looses its momentum at its end etc. It is like the heiken-ashi chart has some sort of internal moving average controlling its display properties.

To me- I can much better guage the overall picture with heiken much better than any other chart. Although I would never look for any shorterm signals with them. However, when I am drawing longterm s/r and typical TA, I like to use the bodies of the heiken, as opposed to longterm bar charts that use the end of the bars.(everybody develops their own system)

#71
Last Post: May 21, 2007 7:03am May 21, 2007 7:03am

arianpiper
| Joined Apr 2007 | Status: Trader | 1 Post

good topic
thanx

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